Parliamentary question on Fixed Establishments (Dec 2023)

• The question pertains to the legal justification of distinguishing the place of supply of services based on whether an entrepreneur supplying goods processing services in Belgium exclusively supplies those services to a VAT payer established abroad.
• The first question asks for the legal provision or interpretation of courts and tribunals that supports the distinction between an ‘exclusive’ establishment and a regular establishment in another EU Member State.
• The second question seeks information about the number of pending disputes related to providing services exclusively to a contractor established in Belgium, the administration’s objective in ruling a contractor as the fixed establishment of their client for VAT purposes, and the potential tax revenue from successful lawsuits.
• The answer clarifies that there is no explicit reference to the concept of an exclusive establishment in the previous answer provided on 14 April 2021.
• The answer further explains the relevant concepts of “place of business” and “fixed establishment” based on EU regulations, highlights the importance of economic reality in determining the place of supply of services, and emphasizes the need to ensure fairness and avoid double taxation or non-taxation.

Source Fisconet